Not backing out from buying Bhushan Power and Steel, but anxious about alleged fraud reports: JSW tells NCLT

JSW Steel on Monday told the National Company Law Tribunal that the company is not backing out from the ongoing resolution process of Bhushan Power & Steel despite reports of alleged fraud by its former promoters

Press Trust of India July 15, 2019 15:00:20 IST
Not backing out from buying Bhushan Power and Steel, but anxious about alleged fraud reports: JSW tells NCLT
  • During the proceedings in NCLT, counsel appearing for JSW Steel informed the tribunal that it was anxious about the alleged fraud reports and needs to know what is going inside Bhushan Power & Steel Ltd (BPSL)

  • NCLT said that alleged fraud reports will not have any impact on the insolvency resolution process and JSW's resolution plan for BPSL

  • Last week, state-owned lender Allahabad Bank had reported fraud of over Rs 1,774 crore by BPSL to the Reserve Bank of India

New Delhi: JSW Steel on Monday told the National Company Law Tribunal that the company is not backing out from the ongoing resolution process of Bhushan Power & Steel despite reports of alleged fraud by its former promoters.

During the proceedings in NCLT, counsel appearing for JSW Steel informed the tribunal that it was anxious about the alleged fraud reports and needs to know what is going inside Bhushan Power & Steel Ltd (BPSL).

A two-member NCLT bench headed by the President Justice M M Kumar asked the Resolution Professional (RP) of BPSL to hand over a copy of the forensic report to JSW Steel.

NCLT said that alleged fraud reports will not have any impact on the insolvency resolution process and JSW's resolution plan for BPSL.

Not backing out from buying Bhushan Power and Steel but anxious about alleged fraud reports JSW tells NCLT

Representational image. News18.

NCLT has to take a decision over the lenders' approval of the resolution plan of JSW Steel for BPSL.

Earlier on 4 February, the National Company Law Appellate Tribunal (NCLAT) had dismissed the plea of Tata Steel and upheld the Committee of Creditors (CoC) decision to approve JSW Steel's bid.

The NCLAT had said the CoC decision was well within its rights to negotiate better terms with resolution applicants and has had asked NCLT to decide over JSW Steel's bid by 31 March, 2019.

However, the judgement is still pending before the Principal bench of NCLT.

JSW Steel had revised its offer from Rs 11,000 crore to Rs 18,000 crore and later to over Rs 19,000 crore, whereas Tata Steel's last offer was at Rs 17,000 crore after it had refused to revise its bid.

Last week, state-owned lender Allahabad Bank had reported fraud of over Rs 1,774 crore by BPSL to the Reserve Bank of India.

Earlier, PNB reported a fraud worth Rs 3,805.15 crore by BPSL by misappropriating bank funds and manipulating its books of accounts.

Around 85 percent of PNB's Rs 4,399 crore exposure to the company had been siphoned off.

Investigate agency CBI has already registered a complaint in April names several other lenders.

According to the CBI, BPSL diverted around Rs 2,348 crore through its directors and staff from the loan accounts of PNB, Oriental Bank of Commerce, IDBI Bank and UCO Bank into the accounts of more than 200 shell companies without any obvious purpose.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

PNB says over 1,700 wilful defaulters owe bank Rs 37,020 cr; Mehul Choksi's companies top of the list
India

PNB says over 1,700 wilful defaulters owe bank Rs 37,020 cr; Mehul Choksi's companies top of the list

Mehul Choksi-promoted Gitanjali Gems Ltd has an outstanding loan of Rs 5,064.84 crore. Gili India and Nakshatra Brands, also part of the Gitanjali Group, owed Rs 1,447 crore and Rs 1,109 crore each to PNB

BCCI announces 'stricter' measures, amnesty scheme to tackle age, domicile fraud in cricket
First Cricket News

BCCI announces 'stricter' measures, amnesty scheme to tackle age, domicile fraud in cricket

Players who voluntarily declare that they have manipulated their date of birth by submitting fake/tampered documents in the past will not be suspended and allowed to participate in the appropriate age group level if they disclose their actual date of birth